There’s no greater sense of power than the one that comes with the belief that you can take care of yourself, no matter where you are in life. This is even truer for the individuals living in the post-retirement phase of their life. When they have their own means to survive and prosper, they don’t need their children or anyone else to rely upon. Now, that’s a liberating feeling. If you are also headed towards this phase of your life, you should make sure that you live in this manner.
For this, you should educate yourself about what is Senior Citizens Savings scheme.
This scheme will ensure that your sunset days breeze smoothly without any unnecessary hiccups. It gives you the power to create your own happiness and mental peace. What could be better than that?
Now if you are wondering what Senior Citizens Savings scheme is and how it can really help you, then read on.
What Is Senior Citizens Savings Scheme?
The Senior Citizen Savings scheme is a special kind of scheme. It has been introduced by the government to lend a stable financial life to the senior citizens (60 years old and above) of India. It does this by ensuring that these citizens are equipped with a regular stream of income in their post-retirement life. As a result of this, they don’t have to necessarily depend on someone else for their own lives.
Now, are you wondering how exactly this Senior Citizens Savings scheme provides for this income? To avail this income, you need to invest in this scheme for a period of 5 years. This duration can also be stretched for an additional 3 years. Then the interest rate will turn these small investments into regular savings. This will be the much-needed financial strength for the latter half of your life.
Senior Citizens Savings Scheme: Eligibility
When you are reading up about what is Senior Citizens Savings scheme, the first thing to know is their eligibility criteria. If you meet the following requirements, you can invest in this scheme:
- If you are a senior citizen who is 60 years old or older.
- If you have chosen the Voluntary Retirement Scheme. On top of this, you also need to be in the 55-60 years age group.
- If you are a part of the defense personnel who has retired. For this, there’s also the additional requirement that you be older than 50 but younger than 60.
- If you are an Indian citizen. NRIs cannot invest in this scheme.
Senior Citizens Savings Scheme: Benefits
Before you read up further on what is Senior Citizens Savings scheme, you should understand why it can be beneficial to invest in this scheme.
Here’s a list of convincing reasons for you to consider this scheme:
- This scheme is sponsored by the Indian government. As a result, it will be safe as well as reliable.
- The whole process for opening an account under this scheme is very simple. In fact, you can carry out this process at any designated bank or post office.
- You can transfer your scheme amount all over the country.
- There is a high interest rate offered on the investments made in the scheme.
- A person can enjoy a tax deduction of up to Rs 1.5 lakh. This is as per the guidelines of Section 80C of the Indian Tax Act, 1961.
- The duration of the account is 5 years, but it can be stretched for an additional 3 years.
Senior Citizens Savings Scheme: Maximum Investment Allowed
Now that you know what is Senior Citizens Savings scheme, you might be interested in knowing how much amount you can invest at the most. To answer that, the maximum limit has been set at Rs 15 lakh for this scheme.
Senior Citizens Savings Scheme: Current Interest Rate
As of now, the interest rate for this scheme stands at 7.4%. You might find it better than most senior citizen fixed deposit interest rates.
Senior Citizens Savings Scheme: Where & How to Open an Account?
There is no provision to open an account online under this scheme. So, you must contact your nearest bank or post office for this purpose. You can get the necessary application form, fill in the required details, submit the necessary documents and then open an account. It is a very simple process.
Conclusion
If you are headed towards the post-retirement phase of your life, it is important that you know what is Senior Citizens Savings scheme. That’s because this government-backed scheme will lend you the necessary financial strength to ensure a smooth life after you retire from your job. You stand to gain a lot of appealing advantages from this scheme. So don’t think twice and prepare for the future by investing in this scheme.